Win for state government
Just a week shy of a year from when the state government started forfeiture action against Hong Kong businessman Benny Wu’s Fortune Island Holding Company and the Far North community has an outcome.
After a brief hearing in the Land Court in Cairns on Tuesday where the company’s legal counsel in part argued the tourism lease had not been breached because kayakers were accessing the island, Acting President Peta Stilgoe OAM needed just three hours to come to a decision: The land court would not stand in the way of Minister for Resources Scott Stewart stripping the lease from the company.
It must be a bitter blow for the company and Mr Wu, who paid $5.68m for the 99-year lease back in 2012.
But it leaves open the question – if his company is willing to fight in court to keep the lease to what is effectively one of the Far North’s tourism jewels, why has his company left it to fall into disrepair instead of spending the money to revitalise and reactivate it?
News of the Land Court’s decision was understandably welcomed by Mr Stewart, under whose watch the forfeiture action was begun. There had been numerous complaints over many years over the state of the resort and the island, all of which has seemed to fall on deaf ears.
“I know the community and the local members want to see Double Island open and available to use, as do I, which is why we took this action,” Mr Stewart said in the wake of the decision.
“We have always maintained lessees on government property are required to meet the conditions on their leases.
“We will always work with lessees wherever they are in Queensland to make sure they are complying with conditions but we will take action as this shows.”
This is the first time the state government has had to take this kind of action against a leaseholder.
So what happens next? If Fortune Island Holding Company appeals, then it’s back to court to fight it out again.
If the company decides to cut its losses and not bother appealing, it’s over to Mr Stewart to strip the lease from the company, given the government’s stance on this matter, is a certainty.